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BAE Awarded Military Sealift Contract

Maritime Activity Reports, Inc.

December 13, 2006

BAE Systems, Norfolk, Va., is being awarded a $6.7m firm-fixed-priced contract for a 60-calendar day regular overhaul and drydock of Military Sealift Command's fleet replenishment oiler USNS Leroy Grumman (T-AO 195). Grumman provides underway replenishment of fuel to U.S. Navy combat ships at sea, enabling them to remain deployed for extended periods of time. This contract includes options which, if exercised, would bring the cumulative value of the contract to $7.9m. Work will be performed in Norfolk, Va., and is expected to be completed by March 2007. Contract funds will expire at the end of the fiscal year. This contract was competitively procured with two offers received. The U.S. Navy's Military Sealift Fleet Support Command, a field activity of Military Sealift Command, is the contracting activity (N40442-07-C-1003).

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